In this instance, the project manager should use quantitative analysis to simulate the overall risk outcome.
Quantitative analysis techniques, such as Monte Carlo simulation or decision tree analysis, can be used to model the combined effect of individual risks on project objectives. By leveraging historical data, the project manager can generate more accurate and reliable risk assessments, which can help inform risk response strategies and improve project decision-making.
Quantitative analysis is a type of risk analysis that numerically analyzes the effect of identified risks on overall project objectives 1. It involves using historical data and other information to estimate the probability and impact of risks, and then applying mathematical techniques such as simulation, sensitivity analysis, decision tree analysis, orexpected monetary value analysis to quantify the overall risk exposure of the project 2. Quantitative analysis can provide more accurate and objective results than qualitative analysis, which relies on subjective judgments and ratings. Quantitative analysis can also help the project manager prioritize risks, determine the optimal risk response strategy, and allocate contingency reserves 3. Therefore, the correct answer is D.
References: 1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Sixth Edition, page 4311 2: PMI Risk Management Professional (PMI-RMP)® Examination Content Outline, page 102 3:
Quantifying risk - Project Management Institute, page 11